Philippines Core Inflation Rate Stays at 31 Percent, Excluding Food and Energy
WEB Core inflation, which excludes selected food and energy items, remained at 31 percent in June 2024, according to the Philippine Statistics Authority (PSA).
This indicates that price pressures in the Philippines remain elevated, although the rate has been relatively stable in recent months. In May 2024, core inflation was also 31 percent, and in April, it was 32 percent.
The PSA attributed the elevated core inflation rate to higher prices for housing, water, electricity, gas, and other fuels, as well as for transportation and communication.
The overall CPI, which includes food and energy items, increased by 3.2 percent in June compared to the previous month, and by 6.1 percent compared to June 2023.
The BSP has been raising interest rates in an effort to curb inflation. In June 2024, the BSP raised its benchmark interest rate by 25 basis points to 4.5 percent.
The BSP has said that it will continue to monitor inflation closely and will take further action if necessary to bring it within its target range of 2-4 percent.
Conclusion
The Philippines core inflation rate remains elevated at 31 percent, excluding food and energy, indicating that price pressures continue to be a challenge for the country. The BSP has been raising interest rates in an effort to curb inflation, but it remains to be seen whether these measures will be effective in bringing inflation within the target range.
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